variable tariffs

Downward trajectory of green tariffs seen stopping in April

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The downward trajectory of variable green tariffs experienced since the country’s new color-coded tariff system was introduced January 1 to simplify price comparisons appears set to stop in April, an energypress examination of wholesale electricity market data has indicated.

If electricity retailers choose to keep unchanged discount rates they offered for March, then just one supplier’s variable green tariff will fall in April, while another supplier’s green tariff will remain the same, energypress calculations have shown. All other suppliers are expected to set higher green tariffs in April.

Besides variable green tariffs, variable yellow tariffs and fixed blue tariffs were also introduced as part of the new system. Yellow tariffs represent a lesser risk for suppliers as their levels are set at the end of each month.

Even if electricity retailers return to generous discount policies they had offered in January and February 2024, small price increases for the vast majority of specific products are expected in April.

The market clearing price for March has so far averaged 69.83 euros per MWh, 5 percent lower than February’s average of 73.61 euros per MWh.

This decline is not expected to lead to lower variable green tariffs in April as other pricing factors are also applied to determine price levels for the month ahead.

 

Variable yellow tariffs also lower-cost option in February

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Variable yellow tariffs offered by electricity suppliers through the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, were lower-cost options than their variable green-tariff alternatives in February, as was the case a month earlier – with the exception of one supplier.

Yellow and green tariffs are both variable tariffs, but the former represent a lesser risk for suppliers as their levels are set at the end of each month.

Variable yellow tariffs offered by electricity suppliers in February ranged between 10.9 cents and 13.43 cents per KWh, averaging 11.86 cents per KWh.

Variable green tariffs were 10 percent higher in February, averaging 13.1 cents per KWh. They ranged between 11 cents per KWh and 14.65 cents per KWh.

As a result of this price gap between green and yellow variable tariffs, the majority of consumers establishing new supply agreements are opting for yellow tariffs.

Consumers were given until the end of 2023 to choose tariff category or be automatically placed in the green tariff category on January 1, when the new color-coded tariff system was introduced. A fixed blue tariff category was also introduced.

Despite the slightly lower cost of yellow variable tariffs, green tariffs have remained low enough to keep consumers settled.

PPC variable green tariff for March down to 9.4 cents/KWh

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A further reduction in wholesale electricity prices in February, down to an average of 72.2 euros per MWh, from 93 euros per MWh a month earlier, has created conditions for lower retail electricity prices in March.

Power utility PPC’s variable green tariff has been set at 9.4 cents per KWh for March, not including any discount the supplier will decide to offer.

Rival power suppliers are expected to follow suit and lower their prices for March, down to roughly 8 cents per KWh, based on formulas applied.

Sliding natural gas prices at the TTF in recent times could lead to a further decline in electricity prices in April, assuming the TTF index remains at its currently low level of around 24 to 25 euros per MWh.

Besides variable green tariffs, the country’s new color-coded tariff system, introduced January 1 to simplify price comparisons, also offers variable yellow tariffs, a lesser risk for suppliers, as their levels are set at the end of each month. In addition, consumers may opt for fixed blue tariffs.

 

Green variable tariffs as low as 9 cents per KWh in March

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Green variable tariffs offered under the country’s new color-coded system, launched January 1 to simplify price comparisons for consumers, are expected to drop sharply in March, taking their cue from a significant reduction in wholesale electricity price levels in February.

Yesterday’s market clearance price averaged 73.71 euros per MWh, 19.31 euros below the average recorded in January, which was 93.02 euros per MWh.

Assuming the market clearance price in the country’s wholesale electricity market remains at levels close to yesterday’s average of 73.71 euros per MWh, the lowest-priced green variable tariffs in March should be set at levels of around 9 cents per KWh.

Such a level will be assured if the market clearance price for February does not exceed 76.5 euros per MWh.

Besides green tariffs, the new color-coded tariff system also offers consumers variable yellow tariffs, which represent a lesser risk for suppliers as their levels are set at the end of each month. The new system also offered fixed blue tariffs.

 

 

Variable yellow tariffs lower than green tariffs in January

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As predicted by the country’s electricity suppliers, variable yellow tariffs ended up being lower-cost options than their variable green-tariff counterparts for electricity consumers in January, the first month of the country’s new color-coded tariff system, introduced to simplify price comparisons.

Though yellow and green tariffs are both variable tariffs, the former represent a lesser risk for suppliers, as their levels are set at the end of each month.

Overall, yellow tariffs averaged a price of 13.74 cents per KWh in January, 7 percent less than the average for green tariffs, which was 14.72 cents per KWh.

Just one energy supplier offered a green tariff level that undercut the company’s yellow tariff in January. All other suppliers offered yellow tariffs as their best-priced options in the variable tariffs category.

Power utility PPC offered a yellow tariff at a rate of 12.34 cents per KWh in January, below its rate of 13.64 cents per KWh for green tariffs.

On the same wavelength, Protergia, a member of the Mytilineos group, offered a yellow tariff of 13.28 cents per KWh, undercutting the company’s rate of 14.3 cents per KWh for green tariffs in January.

Elpedison’s yellow tariff in January, set at 13.51 cents per KWh, was 21 percent cheaper than the company’s green tariff for the same month.

Fysiko Aerio’s yellow tariff of 13.6 cents per KWh undercut the supplier’s green-tariff offering for January by 5 percent, while Elinoil’s yellow tariff, set at 13.27 cents per KWh, also cost less than the supplier’s green tariff, set at 14.04 cents per KWh.

Under the new tariff system, consumers may also opt for fixed tariffs, dubbed blue tariffs, now also available over shorter 6 and 8-month terms, instead of just 12 months, as was the case at the time of the new system’s launch on January 1.

 

Protergia gets ball rolling with shorter-term, fixed tariff offer

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Protergia, a member of the Mytilineos group, has become the country’s first electricity supplier to announce a shorter-term, six-month tariff following a revision of regulations enabling fixed tariffs to be shorter than the original one-year period required by new tariff rules introduced January 1.

Protergia’s fixed tariff, or blue tariff, as dubbed in Greece’s new color-coded tariff system, comes at an appealing price of less than 13 cents per KWh, according to local price-comparison website allazorevma.gr, well below an average of 15.5 cents per KWh recorded by variable tariffs in 2023.

The supplier’s initiative suggests competition in the fixed-tariffs category will be intense. Also, variable tariffs, based on wholesale price forecasts, appear headed for a slight reduction.

Consumers wanting to avoid regular price comparisons of variable tariffs in the coming months will have plenty of appealing fixed-tariff offers to choose from.

Under the country’s new tariff system, color-coding tariff categories for easier price-comparing ability, fixed tariffs, or blue tariffs, as well as variable tariffs, either yellow or green tariffs, were introduced January 1. Though yellow and green tariffs are both variable tariffs, the former are set at the end of each month, and, as a result, represent less of a risk for suppliers.

Also, later this year, officials plan to launch dynamic tariffs, to be dubbed orange tariffs, offering low-voltage consumers equipped with smart meters the ability to take advantage of fluctuations in wholesale electricity prices. The plan to install smart meters around the country now appears set for launch following years of delay.

 

Operator incentives for smart meters, dynamic tariffs nearing

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Distribution network operator DEDDIE/HEDNO will be offered incentive for swift progress on its installation of smart meters, to replace conventional power meters around the country, but will also face penalties for delays, according to energy ministry revisions made to Greece’s REPowerEU package.

According to the plan, the operator will gain from bonuses for swift roll-out of smart meters, while, in the case of delays, DEDDIE/HEDNO’s regulated earnings will be impacted.

The revisions also include a framework for the introduction of dynamic tariffs. Planned to be introduced during the second half of the year, these tariffs will offer low-voltage consumers equipped with smart meters the ability to take advantage of fluctuations in wholesale electricity prices.

For example, consumers will be able to schedule the use of as many appliances as possible at times of low wholesale electricity prices in order to reduce electricity bills, such as midday hours if solar energy production has struck high levels.

Dynamic tariffs, dubbed orange tariffs, will add to the range of tariff choices available to consumers under the country’s new tariff system, color-coding tariff categories for easier price-comparing ability.

Fixed tariffs, or blue tariffs, as well as variable tariffs, either yellow or green tariffs, were introduced January 1. Though yellow and green tariffs are both variable tariffs, the former are set at the end of each month, and, as a result, represent less of a risk for suppliers.

Bids submitted by all four first-round qualifiers to a tender being staged DEDDIE/HEDNO offering a lucrative contract for the installation of 7.3 million smart meters throughout the country are currently being assessed.

Electricity suppliers set to offer new shorter-term fixed tariffs

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The majority of the country’s electricity suppliers are reportedly set to announce new fixed tariffs as soon as RAAEY, the Regulatory Authority for Waste, Energy and Water, makes an official announcement, expected today, authorizing 6 and 8-month fixed tariffs, in addition to one-year fixed tariffs already offered through Greece’s recently introduced new tariff system.

In the lead-up to the RAAEY announcement, the energy ministry is expected to clarify, to the authority, details of related ministerial decision that was deemed to contain certain ambiguities.

Competition between suppliers is expected to intensify for fixed tariffs, growing in appeal to consumers who view anticipated rates at levels of as low as 11 cents per KWh over shorter-term periods as an attractive and secure option.

Under the latest revisions, suppliers will be able to include termination clauses in their terms for fixed tariffs.

A color-coded tariff system was introduced in Greece on January 1 to simplify the price-comparing ability of consumers.

Fixed tariffs have been dubbed blue tariffs, while variable tariffs are offered as either yellow or green tariffs, the former representing a lesser risk for suppliers as their levels are set at the end of each month.

Fixed-tariff rivalry intensifying, appealing rates expected

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Competition between electricity suppliers is set to intensify in the fixed-tariff category following the energy ministry’s decision to slash the required minimum duration of fixed tariffs to six months from 12 months, as was initially set under the country’s new tariff system, launched January 1.

Suppliers are expected to offer appealing fixed tariffs of 6, 8 and 12 month durations when they announce their latest offers tomorrow. Fixed tariff rates are expected to reach roughly 11 cents per KWh, possibly even lower.

Besides fixed tariffs, or blue tariffs – according to the new color-coded tariff system designed to simplify price-comparing ability – consumers may also choose from variable green tariffs and variable yellow tariffs, the latter representing a lesser risk for suppliers as their levels are set at the end of each month instead of the beginning.

Latest fixed-tariff rates to be announced tomorrow by suppliers are most likely to dominate customer attention as they are expected to be set at levels below those of variable green tariffs, which should range between 12 and 14 cents per KWh, and lower than pre-energy crisis tariffs offered by suppliers.

If the wholesale electricity market continues along its downward trajectory, at levels below 30 euros per MWh, then variable green tariffs to be offered in March should fall even lower than the anticipated 11 cents or so per KWh anticipated for fixed tariffs in February.

Meanwhile, RAAEY, the the Regulatory Authority for Waste, Energy and Water, has set a February 12 date for a hearing concerning energy supplier Fysiko Aerio’s 8-month fixed tariff, offered January 1, when the minimum duration for such tariffs was still 12 months.

Though it is seen as less of an issue now that the ministry has halved the 12-month minimum requirement for fixed tariffs and other suppliers are set to join in with shorter-term fixed tariffs, a fine for Fysiko Aerio has not been ruled out.

Green tariffs to fall 2-15% in Feb, shorter-term fixed tariffs

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Electricity suppliers are expected to announce reduced variable green tariffs later this week ranging between 2 and 15 percent, for February, compared to the current month’s levels.

February’s electricity tariffs, set to be announced by suppliers on Thursday, are projected to range between 12 and 14 cents per KWh, a forecast based on January’s average wholesale electricity price and the assumption that suppliers will maintain their discounts at current rates.

Wholesale gas prices have remained below 30 euros per MWh over the past few weeks, which has resulted in a lower market clearing price for January, compared to December.

Suppliers who had announced variable green tariffs of slightly over 14 cents per KWh for January are expected to lower these tariffs for next month by one or two cents per KWh.

Under the country’s new electricity tariff system, introduced January 1, suppliers are entitled to revise their discounts to variable green tariffs on a monthly basis, at the beginning of each month.

Besides variable green tariffs, the new tariff system also includes variable yellow tariffs, which represent a lesser risk for suppliers as their levels are set at the end of each month, as well as fixed blue tariffs.

The overall offering’s fixed blue tariffs are expected to become more appealing for consumers in February as a result of a revision that will lower their duration to at least six months, down from at least 12 months, as was initially set.

A ministerial decision on this decision is expected today, enabling the revision’s implementation on time for February.

New market rules adjusted to allow shorter-term fixed tariffs

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The energy ministry is preparing to adjust the country’s new electricity tariff rules so that suppliers may be permitted to offer fixed tariffs with durations of less than a year, the objective being to enhance the new system’s flexibility.

RAAEY, the Regulatory Authority for Waste, Energy and Water, recently warned that the new electricity tariff system, launched January 1 and color-coding variable and fixed tariffs in an effort to simplify price comparisons for consumers, was in danger of proving ineffective as products offered by some suppliers were not fully abiding by a set of rules established by the authority.

The authority focused on energy supplier Fysiko Aerio’s 8-month fixed blue tariff, fearing it could lead to price comparability issues against the new system’s conventional 12-month fixed blue tariff.

RAAEY officials suggested Fysiko Aerio’s 8-month fixed tariff has taken advantage of an exception provided for in the new supply code, which, under certain conditions, permits supply contracts with a duration of less than one year.

The new electricity tariff system also includes yellow and green tariffs, both variable tariffs, though the former represent a lesser risk for suppliers as their levels are set at the end of each month.

A number of energy suppliers are believed to be awaiting the ministry’s revision in order to offer fixed tariffs with durations of less than a year. The ministry is expected to make the rule revision within the next few days.

Growing number of consumers switching to blue, yellow tariffs

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The number of low-voltage electricity consumers agreeing to switch from special green tariffs to variable yellow tariffs and fixed blue tariffs has increased since the country’s new tariff system was introduced January 1.

In the lead-up to the new tariff system’s launch, consumers had until December 31 to express specific tariff preferences or be automatically transferred, by their supplier, to the special green tariff on the changeover date.

Electricity suppliers have intensified their promotional efforts, mostly through call centers, in an effort to convince consumers to switch to either yellow or blue tariffs.

This overall activity has increased competition between suppliers, as had been intended by the energy ministry when it drew up the new tariff plan.

Some 20 percent of consumers have now switched to either yellow or blue tariffs.

Though yellow and green tariffs are both variable tariffs, the former represent a lesser risk for suppliers, as their levels are set at the end of each month.

On the contrary, suppliers set their green tariff levels at the beginning of each month, and, as a result, gamble on wholesale electricity price levels for the month ahead.

Most consumers transferred to green tariffs under new system

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The majority of the country’s electricity consumers have been automatically transferred to new green variable tariffs, introduced January 1, after not opting for other tariffs offered under the new pricing system.

Consumers who were automatically allotted green tariffs represent at least 70 percent of the respective client bases of all suppliers.

Consumers had up until December 31 to express tariff preferences or be automatically transferred to the green-tariff category by their suppliers.

The dominance of green tariffs at this early stage of the new system had been anticipated as consumers come to terms with its options, which include fixed blue tariffs and variable yellow tariffs.

The changeover, coinciding with the festive season, also played a key role in the lack of action taken by consumers.

A considerable number of consumers have been enquiring about blue tariffs, ensuring fixed tariffs over extended periods of several months, suppliers informed.

PPC sets green tariff at 13.63 cents per KWh for January

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A drop in wholesale electricity prices during the second half of December has enabled power utility PPC to launch its variable green tariff at a lower-than-expected rate of 13.63 cents per KWh for January.

The country’s electricity suppliers have just launched their new tariffs under the country’s new tariff system, introduced January 1.

PPC’s aforementioned green tariff rate concerns monthly low-voltage consumption of up to 500 KWh. The company’s green tariff for monthly consumption over 500 KWh has been set at 14.59 cents per KWh. Also, PPC’s nighttime green tariff rate was set at 11.55 cents per KWh.

The new green tariffs introduced January 1 have been implemented automatically for all consumers, unless they formally objected in the lead-up, up until December 31, and opted for other tariff categories.

Fixed tariffs, dubbed blue tariffs, as well as variable yellow tariffs have been made available under the revamped tariff system.

From now on, suppliers will be announcing green tariffs on the first of each month. Levels announced will remain valid for a month.

Elsewhere, Volton set a green tariff rate of 14.41 cents per KWh, including a 20 percent discount and 20 percent punctuality discount.

Elpedison set its green tariff at 17.06 cents per KWh. Zenith’s green tariff, dubbed Power Home Start, was set at 16.9 cents per KWh. Fysiko Aerio set a green tariff rate of 14.26 cents per KWh, including a punctuality discount.

Volterra’s green tariff, including a discount, is 14.39 cents per KWh. Heron set a rate of 14.05 cents per KWh, including a punctuality discount. NRG’s green tariff is priced at 14.1 cents per KWh, while Protergia’s green tariff, including a discount, was set at 14.26 cents per KWh.

 

Low-level fixed tariffs appealing for consumers

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Fixed tariffs, which proved unpopular during the energy crisis as the absence of state subsidies – for this category – made them exorbitant, are now making a strong comeback.

Dubbed “blue tariffs” under the country’s new tariff system set to be introduced January 1, fixed tariffs have regained their appeal among consumers as the mild winter weather conditions in Europe and low natural gas prices have kept wholesale electricity prices at unusually low levels for this time of the year.

This is enabling fixed tariffs to be set at prices not expected to exceed variable green tariffs by more than 3 or 4 cents per KWh when they are also introduced at the beginning of the new year.

To date, five electricity retailers – PPC, Protergia, Elpedison, Heron and Elin – have announced new fixed tariffs, or blue tariffs, ranging between 14.9 and 17.9 cents per KWh. Other suppliers are expected to follow.

At such levels, many consumers are expected to opt for slightly higher-cost fixed tariffs rather than have to go shopping for the lowest-cost variable tariffs each month.

All this applies under the condition that the average wholesale electricity price for December remains at its current average of 105.07 euros per MWh all the way through the end of the month.

The new green tariffs being introduced at the start of the new year will be implemented automatically, for all consumers, unless they formally object and choose other categories.

Suppliers recommend variable tariffs as lower-cost option

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Local electricity retails are encouraging customers to choose variable tariffs, categorized as “yellow” tariffs, as a lower-cost option, instead of a new green tariff that will be introduced January 1 and be implemented automatically, for all consumers, unless they formally object and choose the variable yellow tariffs.

Suppliers have just begun informing customers, in writing, on new electricity tariffs to come into effect January 1, when subsidized electricity, a measure introduced during the energy crisis, will no longer be offered.

Legal representatives of supply companies contend variable yellow-category tariffs will be cheaper than the new green tariffs set to be introduced, adding that the variable tariffs come with safety measures preventing extreme price fluctuations.

 

Suppliers want more flexible formula for new variable tariff

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A new variable tariff formula that suppliers will need to adopt as a means of improving price-comparison clarity for consumers and stimulating competition will be launched as planned, January 1, when energy crisis measures will be withdrawn, ending subsidies for consumers, energy minister Thodoris Skylakakis confirmed at a meeting yesterday with top officials of ESPEN, the Greek Energy Suppliers Association.

The single variable tariff formula, which all suppliers will need to include in their overall package of tariff offers to consumers, is being introduced with a large proportion of consumers in mind and will allow price comparability of companies’ offers, promoting competition, the minister stressed.

Suppliers called for greater flexibility to the single variable tariff formula so that they could make monthly adjustments, based on prevailing wholesale electricity prices.

All pending retail electricity market issues were tabled during the meeting. These include planned reimbursements for electricity suppliers who have been forced to cover an estimated 800 million euros, overall, in subsidies offered by the state during the energy crisis as support for small and medium-sized enterprises; stricter market rules preventing consumers with unpaid bills from switching suppliers; as well as the imposition of a time limit, for users, on the country’s universal electricity supply service, offered as a last-resort solution by the top five suppliers, based on market share, to black-listed household and business consumers who have been shunned by suppliers over payment failures.

Pre-notification term planned for new variable tariffs in 2024

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The extent of possible additional charges included in variable electricity tariff agreements offered by suppliers as of the new year, when new post-crisis market rules are planned to be introduced, will need to be specified and announced by the 1st of each month and remain valid for the entire month, according to a plan being prepared by the energy ministry.

If the ministry’s planned revisions are implemented, consumers would automatically be transferred to variable-tariff categories offered by suppliers as of January 1, unless they opt – prior to this date – for some other type of supply agreement among the alternatives to be offered by their suppliers.

Consumers opting for fixed tariffs will have the right to 12-month supply agreements but will maintain the right to depart ahead of expiry dates, according to the ministry’s plan.

Given the wider insecurity felt by consumers ahead of January’s planned reactivation of indexation clauses, most consumers will probably prefer fixed tariffs, analysts have noted.

Independent suppliers have expressed concerns, noting the ministry is making decisions for new market rules without considering their views. This lack of exchange is breeding ambiguity and preventing suppliers from forming new pricing policies ahead of January 1, suppliers contend.

Market’s return to normality to include tariff transparency plan

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RAEEY, the Regulatory Authority for Waste, Energy and Water, is preparing measures for the retail electricity market’s return to normality, scheduled for January 1, following a recent extension of suspended indexation clauses until the end of the year.

More specifically, the authority has two decisions in the pipeline. The first decision pertains to the implementation of tariff transparency labeling. The second decision concerns establishing a framework for the retail electricity market’s return to normality at the beginning of 2024.

The authority plans to introduce the use of specific colors for documents containing pre-contractual information in order to help consumers easily identify categories of supply contracts available on the market and understand their charges. Fixed and variable tariffs, for example, will be associated with documents of specific colors.

The authority recently announced an initial plan including four types of electricity supply products – a variety of variable and fixed tariff options – but RAAEY officials have since clarified it was merely indicative as electricity retailers will retain the autonomy to customize and shape their product offerings according to their preferences.